Investors Dump Zenith Bank Shares Ahead of Capital Raise

Equities investors in the local bourse are currently selling their shares in Zenith Bank Plc, intraday trading data obtained from the Nigerian Exchange revealed. The bank’s market value decreased by more than 5% in the past days.

Data obtained from the Nigerian Exchange revealed that the financial services company market value has declined further on Monday as shareholders appetite for holding its shares plunge ahead of annual general meeting. Market value of the bank has declined by more than N31 billion during the intraday trading session on the floor of the Nigerian Exchange.

Its share price has declined by 2.5% during the midday trading session as a results of negative reactions in the equities market amidst Central Bank of Nigeria (CBN) directive to recapitalised commercial banks.

Top Nigerian lender, Zenith Bank, seeks to upgrade its share capital, according to a notice of annual general meeting sent to shareholders of the company. Naira Suffers Big, CBN Goes Ballistic Against FX Whales

It plans to issue share capital from N15,698,246,893.50 divided into 31,396,493, Ordinary shares of N0.50 Kobo each to N31,396,493,787  by the creation of 31,396,493,787 ordinary shares of N0.50 Kobo.

The bank each share is expected to rank pari passu with the existing ordinary shares of the company.

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“That the Board of Directors seeks shareholders’ approval to raise capital from Nigerian or International capital market of up to the authorised capital of the company, through the Issuance of ordinary shares, or preference shares”.

Details from the bank notice explained that the board can achieve this whether by way of a public offering, private placement, rights issue or both, or any other method or combination of methods.

The notice reads that in the event of a Rights Issue, any shares not taken up by existing shareholders within the period stipulated under the Rights issue may be offered for sale to other interested shareholders of the Bank on such terms and conditions as may be determined by the Directors subject to the approvals of the relevant regulatory authorities.

Zenith Bank Plc’ said its Annual General Meeting (AGM) will hold on Wednesday May 8, 2024 at the Civic Centre, Ozumba Mbadiwe Street, Victoria Island, Lagos. >Investors  Dump Zenith Bank Shares Ahead of Capital Raise

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